On the first day of the reimplementation of the increased capital gains tax for multiple homeowners, Minister of Land, Infrastructure and Transport Kim Yoon-deok dismissed concerns about a potential housing market freeze, stating, "The people's sovereignty government is different."
In a post on X (formerly Twitter) on May 10, Kim noted, "Such forecasts are largely based on experiences from past administrations. Should we expect history to repeat itself this time? In the long run, I believe the people's sovereignty government will be different and must be different."
This statement comes amid worries that multiple homeowners might withdraw their properties from the market due to the increased tax burden, leading to a housing market freeze.
This statement comes amid worries that multiple homeowners might withdraw their properties from the market due to the increased tax burden, leading to a housing market freeze.
Kim emphasized that the people's sovereignty government has a different perspective and approach to real estate issues. He pointed out that previous administrations pursued stability policies for the real estate market while maintaining the basic framework of macroeconomic management, including monetary and financial policies.
He added, "The Lee Jae-myung government is not merely focused on stabilizing the real estate market; we recognize that without addressing barriers to social mobility across income classes and regions, we cannot secure the future and unity of South Korea. We are pursuing fundamental institutional reforms to transform the economy from one reliant on real estate windfalls to a productive economic structure by completely redesigning the economic incentive structures in finance, taxation, and supply."
He added, "The Lee Jae-myung government is not merely focused on stabilizing the real estate market; we recognize that without addressing barriers to social mobility across income classes and regions, we cannot secure the future and unity of South Korea. We are pursuing fundamental institutional reforms to transform the economy from one reliant on real estate windfalls to a productive economic structure by completely redesigning the economic incentive structures in finance, taxation, and supply."
Kim also highlighted the government's exceptional capacity for collaboration and execution. He stated, "As the public has witnessed with the achievement of a KOSPI of 7,000 and our response to the Middle East conflict, our housing supply policies are also different. Within just three months of taking office, we announced a plan to supply 1.35 million homes in the metropolitan area, followed by a plan for 60,000 homes in prime locations on January 29."
He continued, "Most importantly, to legally and institutionally support these initiatives, eight legislative bills have been completed, and 14 are awaiting discussion in the National Assembly. We aim to finalize legislation before the end of the first half of the National Assembly session while breaking down barriers between departments to accelerate housing supply in areas like Gwacheon and Taereung more swiftly than ever."
* This article has been translated by AI.
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